By Chae An, CTO, IBM Global Financial Services Sector Ask anyone who’s spent more than a decade in the #banking and financial services industry and they’ll tell you that one of the most common misconceptions about their field is that it is stagnant, old school, and passed over by the incredible innovations happening all around […]
Bank Innovation
Want a #national #bank that’s #mobile-only? So does #Varo #Money. Varo applied for a banking #charter from the Federal Deposit Insurance Corporation (#FDIC), as well as for a charter from the Office of the Comptroller of the Currenc, in the hopes of forming “Varo Bank,” the mobile banking startup announced today. “[Varo] was founded o […]
Bank Innovation
Digital #bitcoin #wallet #Abra is introducing its digital money transfer application to a vast landscape of new users thanks to its integration with #American Express, the companies announced today. “This is the first time a major credit card has partnered with a digital card,” Abra CEO and founder Bill Barhydt told Bank Innovation. “And it definitely […]
Bank Innovation
Plastic cards just aren’t going to cut it anymore for #workers in the “gig #economy,” and businesses have to be ready. This goes for something as simple as travel and payment needs, according to Gint Baladis, vice president, global product management for American Express. What’s #needed are #virtual #payments — non-card-based digital payments (that may […]
Bank Innovation
In this episode, host Brett King celebrates the 200th episode of #Breaking #Banks by taking a look back over the show’s history. King is joined by some of the show&8217;s regular guests during this episode, including Chris Skinner, Dave Birch, Ron Shevlin, and Sam Maule. The group discusses some of the best moments from previous […]
Bank Innovation
The #PSD2 regulatory technical standards for strong customer authentication (SCA) and secure communication (SC) are proving difficult to finalize. Circulated in draft in 2016 for consultation, the EBA published its final draft in February 2017, followed by amendments requested by the European Commission, subsequently rejected by the EBA in June 2017.
The key sticking point is the use of screen scraping. Although PSD2 is #technology-neutral, the EBA banned screen scraping in its final draft, whereas the EC wants to allow it (on a contingency basis).
As it stands, agreement on the final text for the RTS between the EBA, EC and European Parliament may extend into August or September 2017, and with RTS coming into effect 18 months later, now Q1 2019 is the earliest.
PSD2 itself comes into force on 13 January 2018, and while there has always been a well-flagged gap from this date to when the RTS for SCA/SC come into force, the confusion over finalizing the RTS has led some PSPs to question if PSD2 itself will be delayed.
However, PSD2 is still slated to become law across the EU in January 2018, and PSPs have to be compliant with it by then. In the EC’s amendments to the draft RTS, their accompanying explanatory notes state that the RTS and security aspects of PSD2 articles 65 (confirmation of funds), 66 (access for payment initiation), and 67 (access for account information) are applicable from the same date as the RTS, which may have led some to believe the EC wants these key articles on account access to be delayed.
However, the EBA’s rejection of the EC amendments notwithstanding, it is only the RTS and security aspects of these PSD2 articles that the EC wants to apply from 2019, not the whole of each article—the rest of the provisions in these articles would still be mandatory from 13 January 2018.
In fact, the reality is that the final draft of the RTS is not law until the EC, EBA and EP (parliament) are in agreement, so as it stands now, all provisions in all PSD2 articles are applicable from January 2018.
#Banks/PSPs may have bilateral agreements with TPPs after January 2018, but they must also allow access to TPPs without a contract as well.
If a bank is not ready with APIs by January 2018, it’s OK—provided they allow screen scraping. But they risk being excluded from TPP services that only use APIs, giving an advantage to competitors who do provide APIs.
However, PSD2 compliance is independent of these challenges, which do not impact the need to be compliant in January 2018.
To request a copy of our detailed report on the impact of PSD2 RTS, please contact Lakshmi Kv or Jeremy Light.
The post PSD2: Scoping out the impacts of the RTS appeared first on Accenture Banking Blog.
For a variety of companies, from ticket vendors to energy consulting, digital tokens are increasingly becoming a popular way to raise funds. #This is evident in the ballooning number of Initial Coin Offerings, or #ICOs, open right now. Aside from providing a more secure method of funding, having an ICO means appealing to a broader […]
Bank Innovation
Last week at the first meetup for this siste’s sister accelerator INV #Fintech, Chris Fortunato, principal at KEC Ventures, spoke about what he is #looking at now as a #seed #investor in the fintech space. Chris named compliance and regtech as two of the areas he is currently focused on. A written account of Chris&8217;s […]
Bank Innovation
Financial service executives are still concerned about #regulatory changes, but the best response is to improve #data aggregation and #management services. This is according to a #survey by AxiomSL, which found that 66% of regulatory executives believe their institution needs to make investments in data management. The majority of respondents noted that the best response […]
Bank Innovation
I’ve been a big Doctor Who fan since I first cowered behind my parents’ sofa in Scotland in the early 1970s, hiding from the Daleks. From the original black and white 1960s series to the recent news that, for the first time, the 13th Doctor will be a woman, the sci-fi series has continually reinvented itself to remain relevant to new audiences. One secret to its success has been the Doctor’s ability to regenerate into a completely new character every 2 to 3 years. Originally an elegant solution to the failing health of the first actor to play the role, regular regeneration has ensured that the writers have had the flexibility to take the show in different directions.
Read the report
If only it were that easy for #banks to reinvent themselves! Instead of a flash of light and a miraculous rebirth, it’s becoming increasingly obvious that to win in the digital economy, banks not only need to have the right business strategy, they also need to #master the discipline of continuously reinventing themselves. Instead of the #change being a Doctor Who-like episodic and disruptive process, the ability to change and adapt needs to be part of the core DNA of the #bank.
In Accenture’s recent 2017 Banking Change Survey, we asked more than 300 executives about their change priorities, how they embed change in their organisations, and the outcomes they are achieving. The study showed that those who have focused on change as a core capability—our ‘change leaders’—are seeing better results across a range of areas from cost control to customer service. The only category in which change leaders were not advantaged was product and service innovation, where it seems that too much change discipline may hinder spontaneity and creativity to some extent.
The leaders don’t treat change management as an ‘add on’ to other programs like network transformation or IT re-platforming. Instead, they view change management as a distinct discipline that not only ensures that they do the things they need to do, but also have the capacity to execute business strategies that will truly differentiate them. Cristoforo Avagliano, an executive at BNP Paribas, summed it up this way: “You have mandatory change because of regulation, you have change because of what competitors are doing, and then you have another kind of change: to catch the latest trends and what the customer is asking of you, but also what the customer has not asked for, but which you imagine. This is the change that can deliver the greatest economic benefit.”
More broadly, change leaders tell us that they have gotten comfortable with the need for rapid, non-stop transformation. While M&A or other disruptive events can occasionally create an opportunity for a Doctor Who-style radical regeneration, the reality for most banks is that superior performance requires them to master the less glamorous, but demonstrably vital process of continuous improvement.
To learn more, read our full 2017 Banking Change Survey.
The post Discover how your bank can become a change master appeared first on Accenture Banking Blog.
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